permaculture

[Wesley Roe and Marjorie Lakin Erickson <lakinroe@silcom.com>]

Ya'll should check out the link bellow for a great article on the PCU in
the 
Albuquerque Tribune.New Mexico 


Steward of the green
http://www.abqtrib.com/archives/business03/090803_business_permacult.shtml


At a credit union in Santa Fe, he keeps an eye on people's
money so they can keep an eye on the environment

By Dan Shingler
Tribune Reporter

Call it virtuous capitalism: the idea that money can be made from
promoting sustainable lifestyles and lending people the cash to live
them.

Permaculture Credit Union in Santa Fe is at the forefront of the
"green lending" movement, serving more than 500 members in 39
states. It has built its membership in just three years, despite not
offering online banking or ATMs and requiring out-of-state members to
open their accounts and do business through the mail.

New Mexicans and Californians make up the bulk of the membership ranks,
with about 150 and 300 members respectively.

"There's just a huge population of people who believe in
permaculture in those two states," said Don Sarich, president and
chief executive officer.

At 33, Sarich is young to be running a financial institution. He's
unassuming and, from his office above the State Employee Credit Union,
mans the phones and deals with customers.

He's quick to tell a visitor, "You're looking at the one full-time
employee," of what amounts to a financial co-op where volunteer
devotees of permaculture help him run the institution.

The goals of Sarich's small credit union are worlds apart from large
commercial banks. A big bank worries about the return it will garner for
its shareholders. Sarich asks his members for donations to keep the
credit union profitable and capitalized in its infancy. Last year, they
gave a hair more than $44,000 to the cause.

Neither Sarich nor his board expected the institution to be making money
yet. Sarich predicts it will reach the break-even point in the next year
to 18 months, and even that will be sooner than foreseen in its original
business plan.

By its own measure, Permaculture Credit Union is a success and thrives in
places where an environmentally conscious mindset is well rooted and
nourished.

Those who rely on the principles of permaculture - which promote living
in balance with the environment and not negatively affecting the planet -
can use Sarich's credit union to finance their efforts while they put
their savings to work funding "green causes" in which the
credit union invests.

Calling his customers by first names, Sarich takes deposits and loan
payments and, if necessary, goes out personally to see why a borrower
might be late with a payment. For a small credit union, even one bad loan
can hurt its standing with regulators, Sarich said.

Members can borrow money for pretty much anything, but don't expect the
same interest rate on an OPEC-friendly Hummer as you would on an
eco-friendly Toyota Prius.

To join the credit union, Sarich said, a person must take a course in
permaculture design, be affiliated with a permaculture institution or,
and here's the easy one, "believe in the ethics of
permaculture."

So what exactly is permaculture? Some Mother Earth cult? Scientologists
with gardening degrees? Something to do with Roswell?

Permaculture is an approach to land use that weaves together
microclimate, annual and perennial plants, animals, soils, water
management and human needs into productive communities, according to the
textbook "Introduction to Permaculture."

Let's say you are planting a tree. If you're into permaculture, there's
much more to it than driving down to the nursery and picking out the one
you like best. Thinking permaculturally, there are many things to
consider.

A deciduous tree that grows tall and wide will provide cooling shade to a
home in the summer, then allow warming sunlight to reach the home when it
loses its leaves for the winter. Taken a step further, certain trees also
attract certain types of animals that help control insects. The same tree
might also provide fruit for people. It will also affect air flow and can
provide protection against wind and noise if positioned properly.

"When you plant a tree, there are nine or 10 yields you can
get," said Nate Downey, owner of Santa Fe Permaculture Landscaping
and vice chairman of the Permaculture Credit Union.

A permaculturist for more than 10 years, Downey helps clients with
projects ranging from the installation of rainwater catchment systems to
erosion control and soil building.

Once a New York City boy, Downey's success in building a 17-person
landscaping business in Santa Fe largely around permaculture's principles
is a testament to the movement's popularity.

Downey has been on the credit union board for the past two years.

"I wanted to see if it was going to succeed," he said.
"When it seemed to be really taking off, I decided it was my turn to
help out, and I've been very happy with its success ever
since."

Sarich said the credit union is a natural fit for the permaculture
movement. "There's an invisible side of permaculture, and the
financial aspect is part of that invisible side," he said.

Working largely through word of mouth in the community of permaculture
practitioners and teachers, the credit union has had little trouble
attracting members and deposits. For a $50 deposit, a member gets one
vote as a shareholder of the institution. No one gets extra shares for
larger deposits, Sarich said - just one per customer.

Accounts of $300 or more, however, earn interest at rates Sarich said are
competitive with what local banks pay.

The kicker is the loan program.

Sarich offers discount rates on loans for things permaculturists value -
environmentally friendly automobiles and home improvements. Any normal
car, new or used, is eligible for a 6.25 percent interest rate, Sarich
said. But if the car gets 35 miles-per-gallon by federal fuel efficiency
standards, the interest rate goes down to 5.5 percent. Buy a
super-efficient car that gets 45 mpg or more and pay 4.75 percent
interest.

Similarly, Permaculture Credit Union offers a .75 percent discount on
loans made to pay for home energy efficiency upgrades, such as solar
panels, as well as for permaculture landscaping and water catchment and
delivery systems.

So far, deposits have come in faster than loans have gone out. Sarich is
working to bring in more borrowers. The credit union has $2.5 million in
deposits, up from $2.1 million at the beginning of the year.

"We just started in 2000, so it's phenomenal growth," Sarich
said.

The credit union has made more than $800,000 in loans, Sarich said.

Sarich, who joined the credit union in March, has improved loan
generation. The institution made $518,000 in loans so far this year,
compared with $318,000 in all of 2002.

"He joined us in March, and in that first month we didn't see loans
increase because he was getting his feet in the door and his pencils
sharpened, but in April, May and June . . . he far exceeded our
expectations," Downey said.

As the credit union grows, it can make larger loans. Sarich can lend up
to $45,000 to each customer household. But that's up from $30,000 in
March, and Sarich predicts the lending limit will increase as the
institution builds capital and earns the trust of state regulators.

Toward that end, Sarich has kept the institution's credit quality
pristine. "We have zero delinquencies," he said.

It will be up to Sarich to grow the institution into profitability - so
it can be as sustainable as one of Downey's gardens.

A true believer in the credit union concept, Sarich moved from his home
in northern Indiana to take over Permaculture Credit Union.

"If I could work for free, I'd do it for this credit union," he
said. "That's one reason I don't buy a house. What if the credit
union needs me, and I have to cut my salary?"

Downey laughs when asked about Sarich's dedication.

"He's told me the same thing," Downey said.

But Sarich might have little reason to worry. The board supportive of his
efforts, Downey said, and they're not clamoring for the highest return on
their investment.

"I'm first and foremost excited about making the world a better
place," Downey said.

PERMACULTURE CREDIT UNION -- COME ON IN 
Loans immediately available to members from any state

Join the only Credit Union that is based on Permaculture Principles
and Ethics. Signature loans for amounts up to $5,000 at competitive rates
and shared-secured loans at even cheaper rates up to $100,000 are
available immediately to members. Anyone who has taken a Permaculture
course, is a member of an affiliated Permaculture Institute, or believes
in the Permaculture ethics is eligible to become a member for $5
membership fee plus a $50 share deposit.
Teachers/Organizers we can help you by offering credit-worthy students
the ability to borrow money to pay for Permaculture courses. Contact the
PCU to inquire about these and other loan programs.
. Also the PCU is partnering with a Credit Union in California and will
soon be able to make loans on mortgages, rainwater catchment, home energy
efficiency systems, solar heating and electricity systems, landscape, and
car loans. We offer a 0.75 % discount on loans for earth friendly
projects and Earth friendly car discounts: two types are available, .75%
for vehicles with 35mpg or higher average and 1.5% for vehicles with
45mpg or higher average(which is usually the hybrid cars). 



Please call us at 505 954 3479, toll free 1-866-954-3479 or FAX 505 424
1624. Visit us online at
www.pcuonline.org,
email perma@pcuonline.org, or write to
us.
Permaculture Credit Union 
4250 Cerrillos Road
PO Box 29300
Santa Fe, New Mexico 87592-9300